Closing an ATM in a High Crime Area: Compliance Measures

Mitigating Risks: Branch Closing Policy for Federal Regulations

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Question

A bank has a stand-alone ATM in a high crime area. Due to concerns for the safety of individuals using the ATM, management decides to close it. According to branch closing policy statements issued by federal regulators, which of the following actions should the bank take?

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Explanations

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A. B. C. D.

A

According to the branch closing policy statements issued by federal regulators, when a bank intends to close a branch, it must comply with certain requirements. However, an ATM is not a branch, so the bank may not have to comply with all of the requirements for branch closings.

Option A is correct. No action is required because an ATM is not, by definition, a branch. Therefore, the bank does not have to comply with any of the requirements for branch closings when closing an ATM.

Option B is incorrect because it suggests that the bank must post a notice at the ATM at least 30 days before the intended closing date. This requirement only applies to branch closings, not to ATM closings.

Option C is incorrect because it suggests that the bank must notify the bank's federal regulatory agency at least 90 days before the intended closing date. This requirement only applies to branch closings, not to ATM closings.

Option D is incorrect because it suggests that the bank must mail a notice to all customers at least 90 days before the intended closing date. This requirement only applies to branch closings, not to ATM closings.

In summary, the correct answer is option A because an ATM is not a branch and therefore the bank is not required to take any action according to the branch closing policy statements issued by federal regulators.